In this paper we propose a stochastic model to analyze the time evolution of inequality within an economic system. The classical inequality indices (Herfindahl-Hirschman, Gini and Theil’s entropy) are thereby turned into a dynamic form. We show, by using a simulative approach, how it is possible to study the time evolution of inequality in a closed or open economy. We pay particular attention to immigration effects on the inequality. The model is able to manage different behaviors of the inequality indices and it may help decision makers calibrate the economic policies of inequality containment.
Immigration Effects on Economic Systems trough Dynamic Inequality Indices / G., D'Amico; G., Di Biase; Manca, Raimondo. - In: GLOBAL JOURNAL OF BUSINESS RESEARCH. - ISSN 1931-0277. - STAMPA. - 5:(2011), pp. 11-25.
Immigration Effects on Economic Systems trough Dynamic Inequality Indices
MANCA, Raimondo
2011
Abstract
In this paper we propose a stochastic model to analyze the time evolution of inequality within an economic system. The classical inequality indices (Herfindahl-Hirschman, Gini and Theil’s entropy) are thereby turned into a dynamic form. We show, by using a simulative approach, how it is possible to study the time evolution of inequality in a closed or open economy. We pay particular attention to immigration effects on the inequality. The model is able to manage different behaviors of the inequality indices and it may help decision makers calibrate the economic policies of inequality containment.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.